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12/9/2011 12:33AM

Chinese Inflation Slows Sharply

Asia Today: China's consumer price index in November was up 4.2% from a year earlier, slowing from October's 5.5% pace and paving the way for looser monetary policy. WSJ's Deborah Kan and Ken Brown discuss.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... China's inflation rate has slid down significantly for the month of November I'd ever be watching Asia Today and I'm joined by Wall Street Journal's Hong Kong to achieve ... so can is this the sign that time really does have a hold on its economy ... well ... kind of yes the means to BP had been tightening onto inflation was a big reward for them it was ... really was the number one worry for most of this year ... and into the tightening bait they reduced bank lending in a bunch of things so ... that seems to be um playing out now ... is the other factor that the big factor which is ... reducing inflation which is usable economy is slowing and so ... you know resources are you know there's less demand for resources and ears of fewer exports ... so what do you think we can expect to see next year will there be more boosting measures ... well yes I mean that that's what everyone expects him to this this this gives you the green light weight you gotta be really careful one-year central bank loosening ... when you have inflation is the worst thing is to ... set inflation off out of control ... so with that with inflation seemingly under control it still high by a developed market standards but it's it's getting coming in the right direction ... you can use he probably more easing so we saw some of that last week ... and thankfully the reserve and the ... central bank lowered reserve requirements for the banks which was when more ... and so now you're going to have ... Hoeppli more and this ... is a big economic profits next weekend people ... to go to come out from there about easing ... OK well when you look at what's going on in China's economy any trading as the global backdrop of what's going on in Europe and in the US what kinds of conclusions can we draw for the future ... yet so um that the biggest thing that the Conterno street is going down ... on ... production production in China has slowed down a bit and we've seen and the numbers ... ALM ... so the real the real worry is um depending on where the world economy goes either ... come in really slows down in the creeks China locking of backing away can really got slammed ... so they knew that you wonder why how much will China released a new and how much will China tried to ... overcome the headwinds from the rest the world ... and everyone talks about wellies domestic demand in a pickup in China we don't know it has been ... growing but ... can it can it overcome the exports ... it's un clear if the rest the world does okay ... aam then the question is is just trying to do too much and he asserts the retention of inflation in China and in a connected to our ... belief quick U turn ... that those are the things that you were in the next few months and at a time when everyone a lot of people are looking towards China to rescue the world ... right and you know ... I mean to be honest and China has ... its own worries I mean ... the huge bank lending being nation the question is the August lows people worry about that ... people worried about growth people worried about inflation people worry about housing prices ... B of A Lotto worries parents of its kind of expect them to meet ... their China were cannot themselves and came in thanks to Hong Kong Air Chief Ken Brown ... you're watching Asia Today I'm dead broke on ...